Indian Bank is one of the Tamil Nadu based bank provides loans for Indian residents and NRIs. One can avail of loans on fixed as well as floating interest rates for buying a new or an old property, construction and renovation. Registration of Equitable Mortgage is mandatory in States where such provision is available.

Eligibility

Applicants having sufficient, regular and continuous source of income for servicing the loan under the following categories:

• Salaried Class with minimum service of three years
• Businessmen, Professionals and Self-employed with minimum experience of three years
• Pensioners with repayment capacity

Age criteria

• Maximum permissible age at the time of applying : 50 years
• Maximum permissible age at the end of repayment period : 60 years
• Relaxable by 10 years, if found viable by Bank

Purpose of Loan :-

• For purchase / construction of House / Flat
• Building Plan approved by competent authority to be submitted

Margin

Loan upto Rs. 20 lakhs	:	20%
Loan above Rs. 20 lakhs	:	25%
For Repairs and renovation	:	30%

Quantum

• 36 times of Gross Monthly Income or 60 times of Net Monthly Income whichever is higher.
• Spouse income can be included for calculating eligible loan amount, provided he/ she has steady income
• Take home Income should be more than 40% of gross income after deduction of EMI for the proposed loan, apart from other deductions.

Disbursement:

For outright purchase of ready-built house / flat : Lump sum directly to the seller / builder
For construction: In stages as under:

Purchase of Land/ upto basement	:	30%
Upto Lintel	:	20%
Upto Ceiling	:	20%
on completion	:	30%

Maximum Repayment Period

- Loans for purchase / construction of House / Flat : 20 years (including holiday period) for floating rate loans and 10 years (including holiday period) for fixed rate loans
- Maximum Holiday Period of 18 months allowed for Home Loans for the purpose of construction of House / Flat.

Rate of Interest w e f 17.01.2009:

All our Home Loan Floating interest rates are linked to our BPLR (presently 12.50%)

Service Charges

- Processing Charges : 0.25 % on Loan amount (to be remitted at the time of submission of application)
- Administrative Fees : 0.32 % on Loan amount (at the time of acceptance of sanction)
- Engineer valuation fee and legal opinion charges to be borne by the Applicant.

Pre-closure Charges

No pre-closure charges, if loan is closed out of own funds.
2% on Balance outstanding or applicable Drawing Limit whichever is higher, if loan is closed by way of take over by another Bank / Financial Institution.

Security:

Equitable Mortgage of the property.

If the home loan property could not be offered as security for valid reasons, alternate property, the value of which is more than 2 time of the loan amount may be accepted.

Equitable Mortgage to be registered (at Applicant’s cost) if there is a provision for the same in the State where property is located

Group Insurance cover (IB Griha Jeevan):

At the option of the applicant, Group Insurance Life Cover is arranged (at present through L I C) at concessional premium (to be borne by the Applicant). The Applicant may opt for including the premium amount as part of Home Loan Project Cost.

Checklist of documents required for processing Home Loan Proposals:

• Completed Application Form with passport size photograph
• Proof of Identity such as PAN Card / Voter’s ID/Passport/Driving License
• Proof of residence such as Recent Telephone Bill / Electricity Bill / Property Tax Receipt / Passport / Voter’s ID
• Proof of business address in respect of businessmen / industrialists
• Proof of Employment
• Salary Certificate
• Proof of other income like rent, interest on investment, if any
• Income Tax / Wealth Tax (if applicable) Returns for the past 3 years
• Balance Sheet for the past three financial years in the case of Professionals, Businessmen & Self employed
• Agreement of Sale / Sale Deed
• Approved Building Plan
• Title Deed Documents for 30 years
• Patta

Loan for purchase of House Sites is given with interest rate at 10.50% floating and margin of 33%. Maximum Loan amount is Rs.10 lakhs and max. repayment period is 10 years. Age at the time of availing loan Max.50 years and at the end of loan period max. 60 years.